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Don\’t forget to claim Employment Allowance

Employers are reminded to claim the £2,000 Employment Allowance which commenced 6 April 2014. Basically, employers can reduce their National Insurance contributions by a maximum £2,000 in the current tax year.

Here’s the instructions on claiming the allowance as posted on GOV.UK’s website:

“You can use your own 2014 to 2015 payroll software (see your software provider’s instructions), or HM Revenue and Customs’ (HMRC’s) Basic PAYE Tools for 2014 to 2015 to claim the Employment Allowance.

When you make your claim (using the software of your choice), you must reduce your employer Class 1 NICs payment by an amount of Employment Allowance equal to your employer Class 1 NICs due, but not more than £2,000 per year.

For example, if your employer Class 1 NICs are £1,200 each month, in April your Employment Allowance used will be £1,200 and in May £800, as the maximum is capped at £2,000.”

Naturally, if we look after your payroll we will take care of these formalities for you.

The following employers cannot claim the allowance, for instance if you:

employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker

already claim the allowance through a connected company or charity

are a public authority, this includes; local, district, town and parish councils

carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:

NHS services

General Practitioner services

the managing of housing stock owned by or for a local council

providing a meals on wheels service for a local council

refuse collection for a local council

prison services

collecting debt for a government department

If you are unsure if you are entitled to claim we would be happy to discuss your options.

This entry was posted
on Tuesday, April 8th, 2014 at 12:00 am and is filed under Uncategorized.
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